The AUD/USD currency pair plunged this week to retest the current 5-week low of about 0.6909 from a 3-month high of about 0.7080. 

The currency pair has been relatively volatile recently as it continues to trade in a zigzag pattern formation amid continuing uncertainties over Australian cash rate hikes/cuts, as well as, the US-China trade tensions. 

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a busy week in the US. The US Initial and continuing jobless claims numbers came out better than expected beating expectations of 219k with 206k (initial for July) and with 1.688m with 1.676M (continuing claims).

Markit PMI (preliminary) was mixed, beating expectations on services while missing on Manufacturing and Composite.

And on Friday. The US GDP Data (preliminary) beat expectations of 1.9& growth for Q2 with 2.3% growth further boosting the greenback against the Aussie. The series of positive data backing the US Dollar partly explain why the Aussie nosedived this week.

AUD/USD Technical Analysis (the 60-min Chart)

From a technical viewpoint, the AUD/USD currency pair appears to have recently dropped to the oversold levels of the Relative Strength Index Indicator in the 60-min chart. This suggests that the pair could witness a rebound soon as the bears rush to take profits.

However, as demonstrated using the XABCD impulse wave pattern, the downward movement could continue through next week with the momentum still looking strong.

As such, the bears will be targeting profits at around 0.6896 or lower at 0.6881 while the bulls will look for rebounds around 0.6918 or higher at 0.6934.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a sideways channel ranging between 0.6861 and 0.7080. The two levels provide strong support and resistance bases for the bears and bulls to target.

In the long-term, the bulls will be looking for rebound profits at around 0.6943 while the bears will target more downward movements at around 0.6861.

In summary[, the AUD/USD currency pair appears to be trading within a wide sideways channel, which implies a high level of volatility in the pair. But with the fundamentals seemingly in favor of the greenback, the bears will be more optimistic going into next week.